Last time, our blog discussed how perspectives can rapidly change in a post-divorce world, such that a person not only wants to see their practical objectives realized, but also their dreams for the future.
We also discussed, however, that while all this is laudable, the second point may nevertheless prove slightly harder to accomplish given that time and, more significantly, money may be in limited supply after a divorce.
As distressing as this likely seemed, we then began exploring how the simple act of sitting down with a financial planner to 1) discuss the feasibility of these dreams and how much it would take to realize them, and 2) create a formal income-based financial plan may provide the solution.
In today’s post, we’ll explore some of the steps that experts say people must typically take as part of their post-divorce financial plans in order to see their dreams become a reality.
Establish a budget and stick to it
Taking that dream vacation around the world or enrolling in those postgraduate classes will not be cheap, meaning divorced spouses will need to find ways to save more money. One obvious way to do this is to create a budget to help ensure that all of their new post-divorce expenses remain below their monthly pay. While this will require a commitment to new spending habits and hard sacrifices, experts say it can make all the difference.
Automate and invest
Experts indicate that divorced spouses committed to making their dreams a reality should also set up automatic withdrawals that take these monthly savings from a checking account immediately after payday, and deposit them into an investment account that is essentially out of sight and out of mind. This simple step, they argue, will remove the temptation posed by having excess money sitting in an account.
Pay attention to these investments
While putting money into an investment account can help remove some of the spending temptation, experts nevertheless urge divorced spouses not to ignore it. To that end, they recommend that they periodically sit down with their financial planner to review the account’s performance and to make the necessary investment adjustments.
Those with questions about divorce-related issues like alimony or property division, or who would simply like to learn more about the divorce process should strongly consider speaking with an experienced legal professional.